Core Viewpoint - LiqTech International, Inc. reported a significant decline in revenue for Q3 2024, primarily due to delays in a major water treatment project, but is optimistic about future growth opportunities and has implemented cost reduction strategies to improve profitability [2][4]. Financial Highlights - Revenue for Q3 2024 was $2.5 million, a 51% decrease from $5.1 million in Q3 2023, attributed to delays in a large commercial project [2][5]. - Gross loss margin was (8.5)% compared to a gross profit margin of 18.7% in Q3 2023, reflecting a gross loss of $(0.2) million [6]. - Net loss for the quarter was $(2.8) million, compared to $(1.4) million in Q3 2023 [8]. - Ending cash balance was $4.5 million as of September 30, 2024, with a pro forma cash balance of $13.3 million after a private placement [2][8]. Operational Highlights - The company entered a joint venture with Jiangsu Industrial Technology Research Institute to develop water treatment equipment for marine ships in China [3]. - A pilot project order was received from a U.S. petrochemical company for microplastics removal [3]. - Two swimming pool systems were delivered to Ireland and Spain during Q3 2024 [3]. - Testing of a mini unit for lithium brine production pretreatment was completed, leading to a pilot unit order [3]. - A cost reduction strategy was implemented to lower the break-even target to approximately $5.5 million in quarterly revenue [3][4]. Management Commentary - The CEO noted that the delay in the water treatment project impacted Q3 results but emphasized the number of ongoing testing and piloting programs [4]. - The company expects Q4 2024 revenue to be between $3.3 million and $4.3 million, compared to $3.9 million in Q4 2023 [4][9].

Management to Host Conference Call on Thursday, November 14, 2024, at 9:00 a.m. ETBALLERUP, Denmark, Nov. 7, 2024 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT), a high-tech filtration company that manufactures and markets highly specialized filtration products and systems, will report financial results for its third quarter 2024 for the period ended September 30, 2024, on Thursday, November 14, 2024, before the market opens. The Company has scheduled a conference call that same day, Thursday, N ...

Core Viewpoint - LiqTech International, Inc. has announced a definitive securities purchase agreement with existing institutional investors, aiming to raise funds through a Private Placement to support its growth strategy in various sectors [1][4]. Group 1: Private Placement Details - The Private Placement will consist of 3,630,129 shares of common stock, 1,369,871 pre-funded warrants, and warrants to purchase up to 5,000,000 shares of common stock [2]. - The purchase price for one share of common stock and one accompanying warrant is set at $2.00, while the price for one pre-funded warrant and one accompanying warrant is $1.999 [2]. - The transaction will close in two tranches, with the first tranche representing 19.99% of shares outstanding prior to the Private Placement, and the total gross proceeds expected to be $10 million [3]. Group 2: Use of Proceeds - Proceeds from the Private Placement will be utilized for ongoing commercial development in the U.S. oil & gas sector, expansion in the European and U.S. swimming pool sector, and a new initiative in marine exhaust gas recirculation water treatment [4]. Group 3: Company Overview - LiqTech International, Inc. specializes in high-tech filtration technology, providing advanced ceramic silicon carbide filtration technologies for gas and liquid purification [6]. - The company develops products using proprietary silicon carbide technology, offering solutions for challenging purification applications, including diesel exhaust soot emissions control [6].

Financial Performance - Revenue for Q2 2024 was $4,485,062, a decrease of $504,957 or 10.1% compared to $4,990,019 in Q2 2023[62] - Gross profit for Q2 2024 was $717,211, representing a gross profit margin of 16%, down from $1,162,528 and 23.3% in Q2 2023, a decrease of $445,317 or 38.3%[66] - Net loss for Q2 2024 was $2,111,700, an increase of $556,408 or 35.8% compared to a net loss of $1,555,292 in Q2 2023[71] - Revenue for the six months ended June 30, 2024 was $8,720,406, a decrease of $281,132, or 3.1% compared to $9,001,538 in 2023[74] - Gross profit for the same period was $988,313, representing a gross profit margin of 11.3%, down from $1,553,870 and 17.3% in 2023, a decrease of $565,557, or 36.4%[75] - Net loss for the six months ended June 30, 2024 was $4,499,995, an increase of $555,200, or 14.1% from $3,944,795 in 2023[80] Operating Expenses - Total operating expenses for Q2 2024 were $2,803,730, an increase of $38,238 or 1% compared to $2,765,492 in Q2 2023[67] - Selling expenses decreased by $173,103 or 16.8% to $855,122 in Q2 2024, attributed to resignations and reduced travel and marketing costs[67] - General and administrative expenses increased by $163,833 or 11.9% to $1,541,316 in Q2 2024, due to new positions and increased legal and recruitment costs[68] - Research and development expenses rose by $47,508 or 13.2% to $407,292 in Q2 2024, primarily due to one-time exit costs from a lossmaking project[69] - Total operating expenses were $5,120,852, a decrease of $228,643, or 4.3% from $5,349,495 in 2023[76] - Selling expenses decreased by $837,959, or 37.9%, totaling $1,372,701 compared to $2,210,660 in 2023[76] - General and administrative expenses increased by $649,615, or 26.7%, totaling $3,086,047 compared to $2,436,432 in 2023[77] - Research and development expenses were $662,104, a decrease of $40,299, or 5.7% from $702,403 in 2023[78] - Other expenses increased by $218,262, or 122.8%, totaling $396,045 compared to $177,783 in 2023[79] Cash Flow and Working Capital - Cash on hand as of June 30, 2024 was $5,489,776, down from $10,442,181 on December 31, 2023[82] - Net working capital decreased by $3,667,640 to $10,922,792 as of June 30, 2024 compared to $14,590,432 on December 31, 2023[82] - Cash flows used in operating activities for the six months ended June 30, 2024 were $3,779,679, representing an unfavorable change of $22,991 compared to $3,756,688 for the same period in 2023[88] - Cash flows provided by investing activities improved to $333,171 for the six months ended June 30, 2024, compared to cash flows used of $290,468 for the same period in 2023, representing an improvement of $639,639[89] - Cash flows used in financing activities increased to $1,115,153 for the six months ended June 30, 2024, compared to $200,095 for the same period in 2023, representing an increase of $915,058[89] Internal Controls and Remediation - Management identified material weaknesses in internal controls over financial reporting, which were not effective as of June 30, 2024[95] - The company has initiated remediation efforts, including hiring additional finance staff and implementing a new ERP system to enhance internal controls[96] - The company is redesigning and documenting all processes related to financial reporting to ensure effective control operations[96] - Management believes that the steps taken will improve the internal control system, but material weaknesses cannot be considered fully remediated until controls operate effectively over time[97] Business Strategy - The decline in revenue was attributed to decreased deliveries of plastics products and ceramic membranes, partially offset by increased sales of DPFs[62] - The company aims to expand its product range and penetrate new markets, particularly in oil & gas, marine, and chemical industries[58] - The company is focusing on optimizing manufacturing processes to improve profitability within DPF and ceramic membrane production[66] Debt and Financial Instruments - The company recorded an initial debt discount of $1,193,206 based on the fair value of warrants issued, using the Black-Scholes Option Pricing Model with a stock price of $3.89 and an exercise price of $5.20[88] - As of June 30, 2024, the company had no off-balance sheet arrangements and was not aware of any material undisclosed transactions[90]

LiqTech International, Inc. (NASDAQ:LIQT) Q2 2024 Earnings Conference Call August 14, 2024 9:00 AM ET Company Participants Robert Blum - IR, Lytham Partners Fei Chen - CEO Phillip Price - Interim CFO Conference Call Participants Rob Brown - Lake Street Capital Markets Lucas Ward - Ascendiant Capital Markets Operator Good morning, and welcome to the LiqTech International Second Quarter Fiscal Year 2024 Financial Results Conference Call. [Operator Instructions] Please note today's event is being recorded. I w ...

BALLERUP, Denmark, Aug. 14, 2024 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT) ("LiqTech"), a clean technology company that manufactures and markets highly specialized filtration technologies, today announced its financial results for the second quarter of 2024. Q2 2024 Financial Highlights Revenue of $4.5 million, a 10% decrease from Q2 2023 and a 6% increase from Q1 2024. Gross profit margin of 16.0% compared to 23.3% in Q2 2023 and 6.4% in Q1 2024. Net loss of $(2.1) million compared to $(1. ...

BALLERUP, Denmark, Aug. 12, 2024 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT), a high-tech filtration technology company that manufactures and markets highly specialized filtration products and systems, today announced the receipt of an order from one of the world's leading integrated energy companies to deliver a pilot system for produced water treatment in the U.S. This produced water treatment order strengthens the relationship between the two companies with the intention to use the results ...

BALLERUP, Denmark and SHANGHAI, China, Aug. 1, 2024 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT), a high-tech filtration company that manufactures and markets highly specialized filtration products and systems, and China Haisum Engineering Co., Ltd., a one-stop intelligent engineering service company, have entered a Memorandum of Understand ("MoU") to explore the application of LiqTech's advanced filtration system for the challenged industrial water treatment in China. China Haisum Engineering ...

BALLERUP, Denmark, July 25, 2024 /PRNewswire/ -- LiqTech International, Inc. (NASDAQ: LIQT), a high-tech filtration company that manufactures and markets highly specialized filtration products and systems for marine, and Danbee Marine, a South Korean-based maritime representative to the shipping industry, entered into a partnership agreement with Danbee to market LiqTech's marine scrubber water treatment solutions within South Korea, the second largest ship building market in the world after China. Establis ...

Forward-Looking Statements This press release contains "forward-looking statements." Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the reports filed with th ...